Do hail claims increase your insurance policy?

Do hail claims increase your insurance policy? Most adjusters will give you three or four versions of the same answer. They will say yes, any claims on your record will increase rates. #

An excellent question, and with so much misinformation surrounding the topic, we will have to look closely at these policy hucksters.
They aren’t wrong, but for the most part, your insurance rates are algorithms. Meaning you’re insurance company doesn’t have emotions it’s just math. Your policy is rated for perils based on your zip code and nothing else. So if you live in an area that some call “Hail Alley,” you might be paying a premium for hail coverage. With that said, you should consider how large the storm was. A cat-five storm is more costly to insurance companies by definition. Insurance companies always factor that stuff in, and they even name and rate the intensity of each storm. If you open a claim because it was a little windy and you were nervous, you will probably get the roof denied, and it will be listed as a non-catastrophic storm, which certainly could be used against you. Flooding your basement cause you forgot to turn off the shower is an “At Fault” claim, and those are the worst for rates going up. It certainly is easy for insurance companies to cross reference which customers open the most claims and then compare the profitability of customers. You will get a better rate if you have fewer claims on your record. Plain and simple. So if you are asked, Do hail claims increase your insurance policy? You can confidently say yes!

This Hail hit Aurora, Colorado on July 26th 2022. Do you know if opening a claim will make your rates go up?

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“The simple answer to that question is, “Yes.” An insurance company can decide to raise the rates on homeowners after hail damage. Just remember, whether you file the claim or not, your premiums will most likely increase since your insurance company sustained a large financial loss.”-from Homestead Roofing

For the most part, your insurance company will use your zip code to look up historical weather data, see how likely hurricanes, hail, or wind are, and then rate your policy accordingly. Of course, even insurance companies can see conditions that they don’t like. Recently, we have seen insurance companies just up and leave in Florida. According to E&E NEWS CLIMATE WIRE, “Three years ago, FedNat Insurance Co. decided it was smart business strategy to expand deeper into the South to diversify its coverage area. But in 2020 and 2021, major storms hit Louisiana and Texas, and the Florida-based property insurer lost tens of millions of dollars. Now the impact of those storms is being felt in Florida. On June 29, FedNat will cancel 68,200 homeowners’ policies in the state.”

This hail storm in the Colorado Springs, had policy rates jumping out of their own skin, going through a metamorphosis, and after the hail storm subsided, They were completely different animals!

Almost 70k policies are now gone. How does an insurance company negotiate policies? They don’t. They just cancel the policy and leave town. Otherwise, sooner or later, your policy is going to go up. To be fair, though, how much is just inflation? How many homeowners are underinsured? Especially in the case of total loss. Check your policy but a contractor to bid out the work. I bet at least 50% of homeowners are grossly underinsured.

“During periods of rapid inflation, the cost to rebuild may suddenly spike to account for higher lumber prices or a shortage of contractors. If homeowners don’t update their policy to reflect these fluctuations, they may not have enough insurance to fully rebuild their home after a disaster.” states Policy Genius

With inflation running rampant, I would rather hear people asking, “Am I underinsured due to rising labor and material cost?” than listen to the age-old insurance question, “Do hail claims increase your insurance policy?” So it”s always better to be vigilant and to gather all the information you possibly can. #

So don’t forget to check your coverages, but get some quotes to go with it. You might be surprised how high labor has pushed up. Go to BLUE SKY SOLAR AND ROOFING to learn more about hail claims!